Stochastic mean values, rational expectations, and price movements. (English) Zbl 0913.90084
Summary: Numerous economic problems assume the form of finding a fixed point of a continuous self-mapping on a compact interval. We consider instances where the mapping is a parametrized expected value, and we offer an iterative scheme for locating a fixed point. The proposed method can be seen as an adaptive learning method, akin to stochastic approximation.
MSC:
| 91B52 | Special types of economic equilibria |
| 90C90 | Applications of mathematical programming |
| 54H25 | Fixed-point and coincidence theorems (topological aspects) |
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